2007-03-18 12:22:44 · 5 answers · asked by Lis 3 in Business & Finance ➔ Personal Finance
Probably outside the scope of your question, but....I would think about doing NEITHER. Can your current car make it for another month or two? Save like a dog--even if you can only scrape up $1000 or $2000 in the next few months--you would be better off buying a 1992 Honda Civic for that and saving for 6 more months and then upgrading.
If you are strapped enough that you would consider a home equity loan for a car, you don't want to be roping yourself into car payments. That's money DUE every single month. A new payment that you have to come up with every month. Ick!
2007-03-18 13:24:53 · answer #1 · answered by Brad L 4 · 0⤊ 0⤋
1
2016-09-26 12:15:40 · answer #2 · answered by ? 3 · 0⤊ 0⤋
You can deduct the interest on a home equity loan on your taxes. You can't deduct the interest on a car loan.
Other then that, all things being equal, it's not going to make much difference. Either way, you are guaranteeing the loan with either your house or the car.
2007-03-18 12:29:34 · answer #3 · answered by Faye H 6 · 0⤊ 0⤋
Car loan.
Interest rate might very well be cheaper on a car loan than home equity, plus as another answerer has already mentioned, you can default on it if necessary and only lose your car, not your house.
2007-03-18 12:34:35 · answer #4 · answered by Uncle Pennybags 7 · 0⤊ 0⤋
home equity will be tax deductible but you dont want to finance a car for 15 years so if you increase the amount of prinicple you pay to have it paid in 5 years or less everything will be for the best
2007-03-18 12:48:32 · answer #5 · answered by Anonymous · 0⤊ 0⤋